London – British Telecoms Group (BT) says it will cut 13,000 managerial and back-office jobs and move to a smaller London base in an attempt to rebuild from an accounting scandal and downturn in trading.
Chief Executive Gavin Patterson told reporters in London that the job cuts, the highest by the former monopoly since 2008, would save 1.5 billion pounds in costs in three years.
He said that the restructuring would also cost 800 million pounds to implement.
Patterson, in the role since 2013, said the restructuring, would focus on the essential services needed by consumers and businesses.
“We need to ensure we are competitive in the future, that we can deliver products and services for our customers at the right price.
“If we compare how we manage the business with our peers, we’re frankly too complex and overweight. This is a big deal,” he said.
The strategy comes after the group reported a 3 per cent drop in fourth-quarter revenue to 5.96 billion pounds, while core earnings came in at 2.08 billion pounds, up by 1 per cent.
The strategy sought to placate shareholders by maintaining BT’s dividend and agreeing a new pension funding plan.
The forecast by the firm, which owns Britain’s biggest mobile operator EE that it would take up to three years to return to profit growth sent the shares down 9 per cent.
The shares, down 22 per cent this year, are trading at levels last seen in 2012.